Bausch Health Q1 Earnings and Revenues Miss Estimates, Stock Down

Shares of Bausch Health Companies Inc. BHC declined 3.81% after the company reported lower-than-expected first-quarter 2025 results.

Adjusted earnings per share of 59 cents missed the Zacks Consensus Estimate of 83 cents. The earnings were also down from 60 cents in the year-ago quarter.

Total revenues of $2.26 billion were up 5% year over year. The top line also missed the Zacks Consensus Estimate by 0.54%.
Excluding the impact of foreign exchange of $37 million, acquisitions of $6 million and divestitures and discontinuations which negatively impacted the prior year by $8 million, revenues increased 6% organically.

BHC’s shares have lost 34.2% year to date compared with the industry’s decline of 18.2%.

BHC's Q1 in Detail

The company reports revenues under five segments — Salix, International, Diversified Products, Solta Medical and Bausch + Lomb.

Salix revenues totaled $542 million, up 9% year over year. Within this segment, Xifaxan revenues were up 8%, led by strong growth in underlying demand. Trulance revenues were up 20%, while Relistor revenues were down 6%.

Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.

Salix revenues missed the Zacks Consensus Estimate of $545 million and our model estimate of $544 million.

International revenues totaled $262 million, down 1% year over year due to a decline in Latin America. The figure missed the Zacks Consensus Estimate of $268 million but beat our model estimate of $248.9 million. Revenues increased 5% organically (excluding the impact of foreign exchange and divestitures and discontinuations), driven by solid growth in Canada.

Solta Medical reported revenues of $113 million, up 28% year over year. The figure beat the Zacks Consensus Estimate of $105 million but missed our model estimate of $115.4 million.  Revenues were up 33% organically, primarily driven by South Korea and China.

Diversified Product revenues amounted to $205 million, up 1% from the year-ago level.

Neurology sales increased 15% year over year, driven by Wellbutrin and Aplenzin. However, sales from the Dentistry business were down 4% year over year. The Generics business was down 28%. The Dermatology business was down 8% as the launch of Cabtreo was offset by pricing.

Cabtreo (fixed-dose, triple-combination topical treatment for acne vulgaris) was approved in Canada in the third quarter and launched in October 2024.

Diversified Product revenues beat the Zacks Consensus Estimate of $201 million but missed our model estimate of $206.8 million.

Revenues from Bausch + Lomb totaled $1.14 billion, up 3% year over year.  The figure missed the Zacks Consensus Estimate of $1.16 billion and our model estimate of $1.15 billion. Bausch + Lomb’s revenues increased 5% organically on a year-over-year basis, driven by growth across all business units.

BHC's Pipeline Development

The phase II study on amiselimod, a new oral S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis (UC), completed enrollment. BHC also submitted a draft protocol to the FDA for a phase III study for moderate to severe UC patients. The company met all major regulatory bodies and feedback is under review.

The phase III studies in the RED-C program on rifaximin for the prevention and delay of the first episode of hepatic encephalopathy are in the treatment phase. Top-line results are expected by early 2026.

The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals were received for Australia, New Zealand, Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. BHC is awaiting the European regulatory response to the submission.

BHC Updates 2025 Guidance

BHC now expects revenues to be in the range of $9.950-$10.200 billion (previous guidance: $9.9-$10.15 billion). Excluding Bausch + Lomb, revenues are still projected to be in the $4.95-$5.10 billion band. Bausch + Lomb revenues are expected to be in the range of $5-$5.1 billion (previous guidance: $4.950-$5.05 billion).

Our Take on BHC’s Performance

Bausch's first-quarter results were disappointing, with both sales and earnings missing estimates.

The colossal debt continues to weigh on the shares. As of March 31, 2025, the company’s debt obligations amounted to $21.5 billion and cash balance totaled $1.1 billion. BHC completed a $7.9-billion refinancing in early April to extend near and medium-term maturities.

Zacks Rank and Stocks to Consider

Bausch currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are ADMA Biologics Inc ADMA, Beam Therapeutics Inc BEAM and Amicus Therapeutics FOLD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 69 cents to 71 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 87 cents to 93 cents. Year to date, shares of ADMA have rallied 38.8%.

ADMA’s earnings beat estimates in three of the trailing four quarters and missed the same in one, the average surprise being 32.80%.

In the past 60 days, estimates for Beam Therapeutics' loss per share have narrowed from $4.43 to $4.27 for 2025. During the same period, loss per share estimates for 2026 have narrowed from $4.94 to $4.80. BEAM’s earnings beat estimates in three of the trailing four quarters and missed the same in one, the average surprise being 3.92%.

In the past 60 days, estimates for Amicus’ earnings per share (EPS) have increased from 51 cents to 52 cents for 2025. During the same time frame, EPS estimates for 2026 have remained unchanged at 79 cents.

FOLD’s earnings beat estimates in three of the trailing four quarters and missed the same in the remaining one, the average surprise being 45.42%.

 

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